ROCHESTER — The Lilac City is in good financial standing, according to a recently completed audit report by independent auditor Vachon Clukay & Company.

During Tuesday’s City Council workshop, senior audit manager Jarad Vartanian presented the findings of the annual audit completed for the fiscal year that ended June 30, 2012.

At the end of his presentation, Vartanian said, “We are pleased to report that there were no deficiencies or weaknesses identified and no findings or questioned costs to report. Congratulations on your outstanding efforts.”

According to the audit report, the total assets of the city increased by $5.5 million from the previous year.

The audit report also showed that the “unassigned” fund balance in the city’s general fund was higher at the end of last year than the previous year. By the end of June, the city had $12.8 million in the fund balance, while at the end of the previous fiscal year, the city had $11.5 million in fund balance.

The general fund revenues also exceeded budget estimates last year, by $1.5 million. Tax revenues were $1.3 million more than initially estimated.

The audit report also showed that the city’s interest income was $47,000 more than anticipated, and intergovernmental revenue exceeded expectations by $120,000.

According to the audit report, total expenses of $81.8 million last year were less than what was budgeted for, by $1.9 million.

Vartanian said significant savings were seen in areas of public safety, highways and streets, and education.

The audit report also showed that the city retained 16.2 percent of its fund balance last fiscal year. Vartanian said the Local Government Center recommends that municipalities retain 8 to 17 percent of their fund balance, and that Rochester is on the high end of that recommendation.

Mayor T.J. Jean said the audit report shows the city has “an extremely strong financial position.”

“I think this is a pretty impressive detail on how well the city is doing,” he said.

Vartanian praised Rochester’s Finance Department for the positive audit findings, and recognized the finance staff for assisting with the audit. He said the audit would have been a very difficult task without the help of staff in the city’s and School District’s finance offices.

Roland Connors, the city’s deputy finance director, led the audit effort on behalf of the city.